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Press Releases

Nov 2, 2017

ELDORADO RESORTS REPORTS THIRD QUARTER NET REVENUE OF $444.9 MILLION, OPERATING INCOME OF $78.9 MILLION AND ADJUSTED EBITDA OF $112.1 MILLION

RENO, Nev.--(BUSINESS WIRE)-- Eldorado Resorts, Inc. (NASDAQ: ERI) (“Eldorado,” “ERI,” or “the Company”) today reported operating results for the third quarter ended September 30, 2017.

                                           

 

Total Net Revenue

($ in thousands, except per share data)     Three Months Ended
      September 30,
                2017 Pre-                     2016 Pre-            
        2017       Acquisition     2017 Total       2016       Acquisition(3)     2016 Total(2)     Change
West     $ 132,775       $ -     $ 132,775       $ 89,676       $ 33,324       $ 123,000       7.9 %
Midwest       103,510         -       103,510         -         106,294         106,294       (2.6 )%
South       81,696         -       81,696         33,984         58,381         92,365       (11.6 )%
East       126,720         -       126,720         117,905         9,750         127,655       (0.7 )%
Corporate and Other       173         -       173         -         25         25       592.0 %
Total Net Revenue     $ 444,874       $ -     $ 444,874       $ 241,565       $ 207,774       $ 449,339       (1.0 )%
                                           
      Operating Income
($ in thousands, except per share data)     Three Months Ended
      September 30,
                2017 Pre-                     2016 Pre-            
        2017       Acquisition     2017 Total       2016       Acquisition(3)     2016 Total(2)     Change
West     $ 32,556       $ -     $ 32,556       $ 15,606       $ 7,160       $ 22,766       43.0 %
Midwest       24,261         -       24,261         -         22,536         22,536       7.7 %
South       11,293         -       11,293         6,703         7,378         14,081       (19.8 )%
East       21,140         -       21,140         15,102         (917 )       14,185       49.0 %
Corporate and Other       (10,326 )       -       (10,326 )       (9,302 )       (8,115 )       (17,417 )     (40.7 )%
Total Operating Income     $ 78,924       $ -     $ 78,924       $ 28,109       $ 28,042       $ 56,151       40.6 %
                                           
      Adjusted EBITDA
($ in thousands, except per share data)     Three Months Ended
      September 30,
                2017 Pre-                     2016 Pre-            
        2017       Acquisition     2017 Total       2016       Acquisition(3)     2016 Total(2)     Change
West     $ 40,379       $ -     $ 40,379       $ 20,611       $ 9,402       $ 30,013       34.5 %
Midwest       32,447         -       32,447         -         31,683         31,683       2.4 %
South       17,602         -       17,602         8,676         11,668         20,344       (13.5 )%
East       27,902         -       27,902         24,142         (223 )       23,919       16.7 %
Corporate and Other       (6,267 )       -       (6,267 )       (3,709 )       (5,788 )       (9,497 )     (34.0 )%
Total Adjusted EBITDA (4)     $ 112,063       $ -     $ 112,063       $ 49,720       $ 46,742       $ 96,462       16.2 %
                                           

Net Income

               

$

29,554

                 

$

9,682

       

Basic EPS

               

$

0.38

                 

$

0.21

       

Diluted EPS

               

$

0.38

                 

$

0.20

       
                                                   
                                           
                                               
       
      Total Net Revenue
($ in thousands, except per share data)     Nine Months Ended
      September 30,
                2017 Pre-                   2016 Pre-            
        2017       Acquisition(1)     2017 Total (2)     2016       Acquisition(3)     2016 Total (2)     Change
West     $ 293,528       $ 43,414       $ 336,942       $246,608       $ 97,083       $ 343,691       (2.0 )%
Midwest       171,015         142,237         313,252       -       313,443         313,443       (0.1 )%
South       183,425         92,002         275,427       100,514       196,012         296,526       (7.1 )%
East       352,644         11,717         364,361       339,324       27,474         366,798       (0.7 )%
Corporate and Other       366         226         592       -       55         55       976.4 %
Total Net Revenue     $ 1,000,978       $ 289,596       $ 1,290,574       $ 686,446       $634,067       $ 1,320,513       (2.3 )%
                                           
      Operating Income
($ in thousands, except per share data)     Nine Months Ended
      September 30,
                2017 Pre-                   2016 Pre-            
        2017       Acquisition(1)     2017 Total (2)     2016       Acquisition(3)     2016 Total (2)     Change
West     $ 50,507       $ 9,525       $ 60,032       $ 34,825       $ 20,269       $ 55,094       9.0 %
Midwest       39,669         34,819         74,488       -       65,403         65,403       13.9 %
South       28,280         19,165         47,445       18,746       33,557         52,303       (9.3 )%
East       54,333         (1,072 )       53,261       43,767       (3,460 )       40,307       32.1 %
Corporate and Other       (111,834 )       (8,811 )       (120,645 )     (21,312 )     (23,635 )       (44,947 )     168.4 %
Total Operating Income     $ 60,955       $ 53,626       $ 114,581       $ 76,026       $ 92,134       $ 168,160       (31.9 )%
                                             
      Adjusted EBITDA
($ in thousands, except per share data)     Nine Months Ended
      September 30,
                2017 Pre-                   2016 Pre-    

 

     
        2017       Acquisition(1)     2017 Total(2)     2016       Acquisition(3)    

2016 Total (2)

    Change
West     $ 69,765       $ 13,231       $ 82,996       $ 50,519       $ 26,829       $ 77,348       7.3 %
Midwest       52,916         46,856         99,772       -       94,319         94,319       5.8 %
South       41,227         24,918         66,145       24,579       46,151         70,730       (6.5 )%
East       78,519         (120 )       78,399       71,087       (599 )       70,488       11.2 %
Corporate and Other       (16,988 )       (5,996 )       (22,984 )     (11,476 )     (17,784 )       (29,260 )     (21.4 )%
Total Adjusted EBITDA (4)     $ 225,439       $ 78,889       $ 304,328       $ 134,709       $ 148,916       $ 283,625       7.3 %
                                           

Net (Loss) Income

               

$

(15,754

)

               

$

23,842

       

Basic EPS

               

$

(0.25

)

               

$

0.51

       

Diluted EPS

               

$

(0.25

)

               

$

0.50

       
                                           

(1)

 

Figures are for Isle of Capri Casinos, Inc. (“Isle”) for the four months ended April 30, 2017, the day before ERI acquired Isle on May 1, 2017. ERI reports its financial results on a calendar fiscal year. Prior to the Company’s acquisition of Isle, Isle's fiscal year typically ended on the last Sunday in April. Isle's fiscal 2017 and 2016 were 52-week years, which commenced on April 25, 2016 and April 27, 2015, respectively. Such figures were prepared by the Company to reflect Isle’s unaudited consolidated historical net revenues, operating income and Adjusted EBITDA for periods corresponding to ERI's fiscal quarterly calendar. Such figures are based on the unaudited internal financial statements and have not been reviewed by the Company's auditors and do not conform to GAAP.

(2)

 

Total figures for 2016 and 2017 include combined results of operations for Isle and ERI for periods preceding the date that ERI acquired Isle. Such presentation does not conform with GAAP or the Securities and Exchange Commission rules for pro forma presentation; however, we believe that the additional financial information will be helpful to investors in comparing current results with results of prior periods. This is non-GAAP data and should not be considered a substitute for data prepared in accordance with GAAP, but should be viewed in addition to the results of operations reported by the Company.

(3)

 

Figures are for Isle for the three and nine months ended September 30, 2016. Such figures were prepared by the Company to reflect Isles' unaudited consolidated historical net revenues, operating income and Adjusted EBITDA for periods corresponding to ERI's fiscal quarterly calendar. Such figures are based on the unaudited internal financial statements and have not been reviewed by the Company's auditors and do not conform to GAAP.

(4)

 

Adjusted EBITDA is not a GAAP measurement and is presented solely as a supplemental disclosure because the Company believes it is a widely used measure of operating performance in the gaming industry. See “Reconciliation of GAAP Measures to Non-GAAP Measures” below for a definition of Adjusted EBITDA and a quantitative reconciliation of Adjusted EBITDA to operating income (loss), which the Company believes is the most comparable financial measure calculated in accordance with GAAP.

     

“Eldorado’s record third quarter results exhibit the potential that we envisioned when we announced the acquisition of Isle of Capri a little over a year ago. Third quarter Adjusted EBITDA rose 16.2% year over year to $112.1 million despite a 1% net revenue decline that was partially attributable to the impact of two separate hurricanes,” said Gary Carano, Chairman and Chief Executive Officer of Eldorado. “Our growth continues to be broad-based across the portfolio as Adjusted EBITDA improved at 12 of our 19 properties. As a result, our third quarter property Adjusted EBITDA margin increased 300 basis points year over year to 26.6% while our consolidated Adjusted EBITDA margin rose 370 basis points to 25.2%.

“Our implementation of best practice operating strategies across the portfolio continued to drive margin expansion as we continue to identify additional refinements to our marketing and promotional spend and streamline our food and beverage operations, while also reducing corporate expense, which declined over 30% compared to last year. We also continue to make significant progress on our synergy plan following our acquisition of Isle of Capri earlier this year as we achieved our target of $35 million of annual synergies within four months of closing the transaction.

“Eldorado has established a track record of success in growing operations through acquisitions by identifying and executing synergy opportunities, implementing our proven operating model focused on providing best-in-class guest service and market-leading amenities and investing in return-focused amenity upgrades, where appropriate, to grow property results. Work completed to date on our $50 millionRenoTri-Properties improvement program includes upgrades to approximately 600 rooms at Circus Circus and 153 rooms at Eldorado Reno, a new Starbucks café added at Eldorado Reno in the third quarter, a new poker room and Canter’s Deli at Silver Legacy and a range of amenity upgrades at Circus Circus including a variety of new food and beverage offerings. These facility enhancements have created a more integrated experience across the Reno Tri-Properties while offering unique guest experiences at each property, which is helping drive higher gaming revenue and increases in room rate and occupancy, all of which contributed to the more than 34% Adjusted EBITDA growth in our West region in the third quarter.

“We believe that we are well positioned for further growth as we benefit from scale that can mitigate property-specific challenges, our continued successful integration of the Isle of Capri properties, additional opportunities to realize synergies, and higher guest satisfaction and improved traffic at our properties following return-focused facility upgrades. We operate in a number of markets that are growing and we are applying operational discipline in our efforts to drive EBITDA even in low or no growth markets.”

Balance Sheet and Liquidity

At September 30, 2017, Eldorado had $134.9 million in cash and cash equivalents and $21.3 million in restricted cash. In September, the Company completed a $500 million add-on offering to its outstanding 6% senior notes due 2025, the proceeds of which were used to repay all of the outstanding borrowings under its revolving credit facility and to repay a portion of the outstanding borrowings under the Company’s term loan facility and related accrued interest. As a result, outstanding indebtedness at September 30, 2017 totaled $2.3 billion, with no amounts outstanding on the Company’s revolving credit facility. Capital expenditures in the third quarter and first nine months of 2017 totaled $23.4 million and $53.2 million, respectively. The Company expects 2017 full-year capital expenditures of approximately $80 million, with $27 million allocated to project cap-ex and the remaining $53 million for maintenance cap-ex.

“We continue to focus on extracting synergies following the May acquisition of Isle of Capri, and we achieved our target of $35 million in annual synergies in only four months,” said Tom Reeg, President and Chief Financial Officer. “Our expanded scale and success in expanding property-level margins is resulting in significant EBITDA growth which, combined with lower interest expense and modest capital expenditures, is driving higher free cash flow, allowing us to continue to reduce leverage while providing us the financial flexibility and capacity to seek additional acquisition opportunities.”

On August 22, 2016, Isle entered into an agreement to sell Lake Charles for aggregate consideration of $134.5 million, subject to certain adjustments. The transaction remains subject to Louisiana Gaming Control Board approval and other customary closing conditions and, if obtained, the transaction is expected to be completed by December 31, 2017. The Company intends to allocate all of the net proceeds from the sale to debt reduction. The operations of Lake Charles have been classified as discontinued operations and as assets held for sale for all periods presented.

Summary of 2017 Third Quarter Region Results

Reflecting the completion on May 1 of the Company’s acquisition of Isle of Capri, Eldorado reports results in four regions. The reporting format is consistent with changes the Company has made in its management reporting structure.

West Region(Reno Tri-Properties, Isle Casino Hotel Black Hawk and Lady Luck Casino Black Hawk)

Net revenue for the West Region properties for the quarter ended September 30, 2017 increased approximately 7.9% to $132.8 million compared to $123.0 million in the prior-year period, while operating income rose to $32.6 million from $22.8 million in the year-ago quarter. Adjusted EBITDA increased 34.5% to $40.4 million reflecting an Adjusted EBITDA margin of 30.4% compared to Adjusted EBITDA of $30.0 million on an Adjusted EBITDA margin of 24.4% in the prior-year period. Adjusted EBITDA increased year over year at the Reno Tri-Properties and at both Isle Black Hawk and Lady Luck Black Hawk with the combined Adjusted EBITDA margin for the Black Hawk properties exceeding 30% in the third quarter of 2017.

Midwest Region(Isle Casino Waterloo, Isle Casino Bettendorf, Isle of Capri Casino Boonville, Isle Casino Cape Girardeau, Lady Luck Casino Caruthersville and Isle of Capri Casino Kansas City)

Net revenue for the Midwest Region properties for the quarter ended September 30, 2017 decreased approximately 2.6% to $103.5 million compared to $106.3 million in the prior-year period, while operating income rose to $24.3 million from $22.5 million in the year-ago quarter. Adjusted EBITDA rose approximately 2.4% to $32.4 million as the Adjusted EBITDA margin for the segment rose 150 basis points to 31.3%. Adjusted EBITDA increased year over year at four of the six Midwest Region properties and was essentially flat at one property. Adjusted EBITDA for the Midwest Region in the prior-year period was $31.7 million reflecting an Adjusted EBITDA margin of 29.8%.

South Region(Isle Casino Racing Pompano Park, Eldorado Shreveport, Isle of Capri Casino Lula and Lady Luck Casino Vicksburg)

Net revenue for the South Region properties for the quarter ended September 30, 2017 declined approximately 11.6% to $81.7 million compared to $92.4 million in the prior-year period, inclusive of an impact of approximately $2.1 million related to Hurricane Irma. Operating income of $11.3 million compared to $14.1 million in the year-ago quarter and Adjusted EBITDA declined 13.5% to $17.6 million compared to Adjusted EBITDA of $20.3 million in the prior-year period. Hurricane Irma impacted the South region properties’ Adjusted EBITDA by approximately $1.5 million and historically low table hold and Hurricane Harvey impacted Adjusted EBITDA at Eldorado Shreveport. As a result, Adjusted EBITDA margin for the region declined 50 basis points to 21.5%.

East Region(Presque Isle Downs and Casino, Lady Luck Casino Nemacolin, Eldorado Scioto Downs Racino and Mountaineer Casino, Racetrack and Resort)

Net revenue for the East Region properties for the quarter ended September 30, 2017 declined approximately 0.7% to $126.7 million compared to $127.7 million in the prior-year period, while operating income grew to $21.1 million from $14.2 million in the year-ago quarter. Despite the modest revenue decline, Adjusted EBITDA for the East Region rose 16.7% to $27.9 million compared to Adjusted EBITDA of $23.9 million in the prior-year period as the East region’s Adjusted EBITDA margin improved 330 basis points to 22.0%. All four of the East region’s properties delivered double digit year-over-year Adjusted EBITDA growth, including the eleventh consecutive quarter of Adjusted EBITDA growth for Eldorado Scioto Downs and the third consecutive quarter of double digit growth at Mountaineer Casino, Racetrack & Resort which continues to benefit from the Company’s initiatives to improve amenities and right-size operating expenses to match current visitation and revenue volumes.

Reconciliation of GAAP Measures to Non-GAAP Measures

Adjusted EBITDA (defined below), a non GAAP financial measure, has been presented as a supplemental disclosure because it is a widely used measure of performance and basis for valuation of companies in our industry and we believe that this non GAAP supplemental information will be helpful in understanding the Company’s ongoing operating results. Adjusted EBITDA represents operating income (loss) before depreciation and amortization, stock based compensation, transaction expenses, S-1 expenses, severance expenses and other, which includes equity in income (loss) of unconsolidated affiliates, (gain) loss on the sale or disposal of property, and other regulatory gaming assessments, including the impact of the change in regulatory reporting requirements, to the extent that such items existed in the periods presented. Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with U.S. GAAP, is unaudited and should not be considered an alternative to, or more meaningful than, net income (loss) as an indicator of our operating performance. Uses of cash flows that are not reflected in Adjusted EBITDA include capital expenditures, interest payments, income taxes, debt principal repayments and certain regulatory gaming assessments, which can be significant. As a result, Adjusted EBITDA should not be considered as a measure of our liquidity. Other companies that provide EBITDA information may calculate EBITDA differently than we do. The definition of Adjusted EBITDA may not be the same as the definitions used in any of our debt agreements.

Third Quarter Conference Call

Eldorado will host a conference call at 4:30 p.m. ET today. Senior management will discuss the financial results and host a question and answer session. The dial in number for the audio conference call is 719/325-2408, conference ID 7971486 (domestic and international callers). Participants can also access a live webcast of the call through the “Events & Presentations” section of Eldorado’s website at http://www.eldoradoresorts.com/ and a replay of the webcast will be archived on the site for 90 days following the live event.

About Eldorado Resorts, Inc.

Eldorado Resorts is a leading casino entertainment company that owns and operates nineteen properties in ten states, including Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, Pennsylvania and West Virginia. In aggregate, Eldorado’s properties feature approximately 20,000 slot machines and VLTs, more than 550 table games and over 6,500 hotel rooms. For more information, please visit www.eldoradoresorts.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.Forward-looking statements include statements regarding our strategies, objectives and plans for future development or acquisitions of properties or operations, as well as expectations, future operating results and other information that is not historical information.When used in this press release, the terms or phrases such as “anticipates,” “believes,” “projects,” “plans,” “intends,” “expects,” “might,” “may,” “estimates,” “could,” “should,” “would,” “will likely continue,” and variations of such words or similar expressions are intended to identify forward-looking statements.Although our expectations, beliefs and projections are expressed in good faith and with what we believe is a reasonable basis, there can be no assurance that these expectations, beliefs and projections will be realized.There are a number of risks and uncertainties that could cause our actual results to differ materially from those expressed in the forward-looking statements which are included elsewhere in this press release.Such risks, uncertainties and other important factors include, but are not limited to:Eldorado’s ability to promptly and effectively integrate the business of Eldorado and Isle and realize synergies resulting from the combined operations; our substantial indebtedness and the impact of such obligations on our operations and liquidity; competition; sensitivity of our operations to reductions in discretionary consumer spending and changes in general economic and market conditions; governmental regulations and increases in gaming taxes and fees in jurisdictions in which we operate; and other risks and uncertainties described in our reports on Form 10-K, Form 10-Q and Form 8-K.

In light of these and other risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur.These forward-looking statements speak only as of the date of this press release, even if subsequently made available on our website or otherwise, and we do not intend to update publicly any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made, except as may be required by law.

                 

ELDORADO RESORTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except per share data)

(unaudited)

                 
    Three Months Ended     Nine Months Ended
    September 30,     September 30,
    2017     2016     2017     2016
REVENUES:                                        
Casino   $   367,930       $   184,604       $   825,833       $   532,141  
Pari-mutuel commissions       5,162         3,527         9,945         7,104  
Food and beverage       56,356         38,029         132,307         108,735  
Hotel       38,536         28,001         85,473         73,843  
Other       15,052         12,095         35,196         33,994  
        483,036         266,256         1,088,754         755,817  
Less-promotional allowances       (38,162 )       (24,691 )       (87,776 )       (69,371 )
Net operating revenues       444,874         241,565         1,000,978         686,446  
EXPENSES:                                        
Casino       184,790         103,272         428,543         299,908  
Pari-mutuel commissions       4,601         3,506         9,793         7,761  
Food and beverage       26,457         21,046         66,711         61,557  
Hotel       10,138         7,956         24,767         23,064  
Other       7,792         7,298         18,689         19,990  
Marketing and promotions       24,634         11,323         54,845         30,664  
General and administrative       68,585         34,094         155,778         98,129  
Corporate       7,718         4,426         21,734         15,684  
Depreciation and amortization       29,122         15,810         69,635         47,597  
Total operating expenses       363,837         208,731         850,495         604,354  
GAIN (LOSS) ON SALE OF ASSET OR DISPOSAL OF PROPERTY       4         25         (51 )       (740 )
ACQUISITION CHARGES       (2,094 )       (4,750 )       (89,172 )       (5,326 )
EQUITY IN LOSS OF UNCONSOLIDATED AFFILIATE       (23 )               (305 )        
OPERATING INCOME       78,924         28,109         60,955         76,026  
OTHER EXPENSE:                                        
Interest expense, net       (29,183 )       (12,589 )       (69,380 )       (38,375 )
Loss on early retirement of debt, net       (10,030 )               (37,347 )       (155 )
Total other expense       (39,213 )       (12,589 )       (106,727 )       (38,530 )
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES       39,711         15,520         (45,772 )       37,496  
(PROVISION) BENEFIT FOR INCOME TAXES       (11,595 )       (5,838 )       27,625         (13,654 )
INCOME (LOSS) FROM CONTINUING OPERATIONS       28,116         9,682         (18,147 )       23,842  
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAXES       1,438                 2,393          
NET INCOME (LOSS)   $   29,554     $   9,682     $   (15,754 )   $   23,842  
                                         
Income (loss) per common share attributable to common stockholders - basic:                                        
Income (loss) from continuing operations   $   0.36     $   0.21     $   (0.28 )   $   0.51  
Income from discontinued operations net of income taxes       0.02                 0.03          
Net income (loss) attributable to common stockholders   $   0.38     $   0.21     $   (0.25)     $   0.51  
                                         
Income (loss) per common share attributable to common stockholders - diluted:                                        
Income (loss) from continuing operations   $   0.36     $   0.20     $   (0.28 )   $   0.50  
Income from discontinued operations, net of income taxes       0.02                 0.03          
Net income (loss) attributable to common stockholders   $   0.38     $   0.20     $   (0.25)     $   0.50  
                                         
Weighted Average Basic Shares Outstanding       76,902,070         47,193,120         63,821,705         47,106,706  
Weighted Average Diluted Shares Outstanding       77,959,689         47,834,644         64,768,174         47,737,592  
                                         
         

ELDORADO RESORTS, INC.

SUMMARY INFORMATION AND RECONCILIATION OF

OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

($ in thousands)

 
         
      Three Months Ended September 30, 2017  
      Operating

Income

(Loss)

    Depreciation

and

Amortization

    Stock-Based

Compensation

    Transaction

Expenses

    Severance

Expense

    Other (6)     Adjusted

EBITDA

 
West     $   32,556     $   7,654     $   67     $       $   59     $   43     $   40,379  
Midwest         24,261         7,995         67                 133         (9)         32,447  
South         11,293         6,055         29                 220         5         17,602  
East         21,140         6,732         5                 64         (39)         27,902  
Corporate         (10,326 )       686         1,207         2,094                 72         (6,267 )
Total     $   78,924     $   29,122     $   1,375     $   2,094     $   476     $   72     $   112,063  
         
      Three Months Ended September 30, 2016  
      Operating

Income

(Loss)

    Depreciation

and

Amortization

    Stock-Based

Compensation

    Transaction

Expenses

    Severance

Expense

    Other (6)     Adjusted

EBITDA

 
Excluding Pre-Acquisition:                                                                        
West     $   15,606     $   4,864     $       $       $   153     $   (12 )   $   20,611  
Midwest                                                          
South         6,703         1,973                                         8,676  
East         15,102         8,847                         263         (70 )       24,142  
Corporate         (9,302 )       126         717         4,750                         (3,709 )
Total Excluding Pre-Acquisition     $   28,109     $   15,810     $   717     $   4,750     $   416     $   (82 )   $   49,720  
                                                                         
Pre-Acquisition (3):                                                                        
West     $   7,160     $   2,236     $   6     $       $       $       $   9,402  
Midwest         22,536         10,058         41                         (952 )       31,683  
South         7,378         4,269         21                                 11,668  
East         (917 )       694                                         (223 )
Corporate         (8,115 )       322         1,200         805                         (5,788 )
Total Pre-Acquisition     $   28,042     $   17,579     $   1,268     $   805     $       $   (952 )   $   46,742  
                                                                         
Including Pre-Acquisition:                                                                        
West     $   22,766     $   7,100     $   6     $       $   153     $   (12 )   $   30,013  
Midwest         22,536         10,058         41                         (952 )       31,683  
South         14,081         6,242         21                                 20,344  
East         14,185         9,541                         263         (70 )       23,919  
Corporate         (17,417 )       448         1,917         5,555                         (9,497 )
Total Including Pre-Acquisition (2)     $   56,151     $   33,389     $   1,985     $   5,555     $   416     $   (1,034 )   $   96,462  
                                                                         
         
         
      Nine Months Ended September 30, 2017  
      Operating

Income

(Loss)

      Depreciation

and

Amortization

      Stock-Based

Compensation

      Transaction

Expenses

      Severance

Expense

      Other (6)       Adjusted

EBITDA

 
Excluding Pre-Acquisition:                                                                                    
West     $   50,507       $   18,868       $   119       $         $   255       $   16       $   69,765  
Midwest         39,669           12,961           153                     135           (2 )         52,916  
South         28,280           12,649           70                     223           5           41,227  
East         54,333           23,885           9                     86           206           78,519  
Corporate         (111,834 )         1,272           4,063           89,172           289           50           (16,988 )
Total Excluding Pre-Acquisition     $   60,955       $   69,635       $   4,414       $   89,172       $   988       $   275       $   225,439  
                                                                                     
Pre-Acquisition (1):                                                                                    
West     $   9,525       $   3,694       $   8       $         $         $   4       $   13,231  
Midwest         34,819           11,952           51                     5           29           46,856  
South         19,165           5,694           26                               33           24,918  
East         (1,072 )         952                                                   (120 )
Corporate         (8,811 )         371           1,631           286           549           (22 )         (5,996 )
Total Pre-Acquisition     $   53,626       $   22,663       $   1,716       $   286       $   554       $   44       $   78,889  
                                                                                     
Including Pre-Acquisition:                                                                                    
West     $   60,032       $   22,562       $   127       $         $   255       $   20       $   82,996  
Midwest         74,488           24,913           204                     140           27           99,772  
South         47,445           18,343           96                     223           38           66,145  
East         53,261           24,837           9                     86           206           78,399  
Corporate         (120,645 )         1,643           5,694           89,458           838           28           (22,984 )
Total Including Pre-Acquisition (2)     $   114,581       $   92,298       $   6,130       $   89,458       $   1,542       $   319       $   304,328  
                                                                                     
                                                                                     
         
         
         
      Nine Months Ended September 30, 2016  
      Operating

Income

(Loss)

      Depreciation

and

Amortization

      Stock-Based

Compensation

      Transaction

Expenses (5)

      Severance

Expense

    Other (4)(6)     Adjusted

EBITDA

 
Excluding Pre-Acquisition:                                                                                
West     $   34,825       $   15,373       $         $         $   153     $   168     $   50,519  
Midwest                                                                  
South         18,746           5,883                                       (50 )       24,579  
East (4)         43,767           25,990                               264         1,066         71,087  
Corporate         (21,312 )         351           2,749           5,324           1,461         (49 )       (11,476 )
Total Excluding Pre-Acquisition     $   76,026       $   47,597       $   2,749       $   5,324       $   1,878     $   1,135     $   134,709  
                                                                                 
Pre-Acquisition (3):                                                                                
West     $   20,269       $   6,528       $   32       $         $       $       $   26,829  
Midwest         65,403           29,034           129                             (247 )       94,319  
South         33,557           12,525           69                                     46,151  
East         (3,460 )         2,861                                               (599 )
Corporate         (23,635 )         1,118           3,058           805           870                 (17,784 )
Total Pre-Acquisition     $   92,134       $   52,066       $   3,288       $   805       $   870     $   (247)     $   148,916  
                                                                                 
Including Pre-Acquisition:                                                                                
West     $   55,094       $   21,901       $   32       $         $   153     $   168     $   77,348  
Midwest         65,403           29,034           129                             (247 )       94,319  
South         52,303           18,408           69                             (50 )       70,730  
East (4)         40,307           28,851                               264         1,066         70,488  
Corporate         (44,947 )         1,469           5,807           6,129           2,331         (49)         (29,260 )
Total Including Pre-Acquisition (2)     $   168,160       $   99,663       $   6,037       $   6,129       $   2,748     $   888     $   283,625  
                                                                                 

(1)

 

Figures for Isle are the four months ended April 30, 2017, the day before the Company acquired Isle on May 1, 2017. The Company reports its financial results on a calendar fiscal year. Prior to the Company’s acquisition of Isle, Isle’s fiscal year typically ended on the last Sunday in April. Isle’s fiscal 2017 and 2016 were 52-week years, which commenced on April 25, 2016 and April 27, 2015, respectively. Such figures were prepared by the Company to reflect Isle’s unaudited consolidated historical net revenues and Adjusted EBITDA for periods corresponding to the Company’s fiscal quarterly calendar. Such figures are based on the unaudited internal financial statements and have not been reviewed by the Company’s auditors and do not conform to GAAP.

(2)

 

Total figures for 2016 and 2017 include combined results of operations for Isle and the Company for periods preceding the date that the Company acquired Isle. Such presentation does not conform with GAAP or the Securities and Exchange Commission rules for proforma presentation; however, we believe that the additional financial information will be helpful to investors in comparing current results with results of prior periods. This is non-GAAP data and should not be considered a substitute for data prepared in accordance with GAAP, but should be viewed in addition to the results of operations reported by the Company.

(3)

 

Figures are for Isle for the three and nine months ended September 30, 2016. Such figures were prepared by the Company to reflect Isle’s unaudited consolidated historical net revenues, operating income and Adjusted EBITDA for periods corresponding to the Company’s fiscal quarterly calendar. Such figures are based on the unaudited internal financial statements and have not been reviewed by the Company’s auditors and do not conform to GAAP.

(4)

 

Effective January 1, 2016, the Ohio Lottery Commission enacted a regulatory change which resulted in the establishment of a $1.0 million progressive slot liability and a corresponding decrease in net slot win during the first quarter of 2016. The changes are non-cash and related primarily to prior years. The net non-cash impact to Adjusted EBITDA was $0.6 million for the nine months ended September 30, 2016.

(5)

 

Transaction expenses for the three and nine months ended September 30, 2017 represent acquisition costs related to the Isle Acquisition. Transaction expenses for the three and nine months ended September 30, 2016 represent acquisition costs related to the Reno Acquisition and includes a credit of $2.0 thousand related to S-1 offering costs.

(6)

 

Other is comprised of (gain) loss on the sale or disposal of property, equity in loss of unconsolidated affiliate and other regulatory gaming assessments, including the item listed in footnote (4) above.

 

Eldorado Resorts, Inc.
Thomas Reeg, 775-328-0112
President and Chief Financial Officer
investorrelations@eldoradoresorts.com
or
JCIR
Joseph N. Jaffoni, Richard Land, 212-835-8500
eri@jcir.com

 

Source: Eldorado Resorts, Inc.

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